SWOT ANALYSIS ON

SECOND CUP COFFEE COMPANY

Presentation by:
Mahodi Hasan Rabbi
Hasibul Islam
Armaan Hossain
Mohammad Salehin Habib
 What is SWOT?

Strengths, weaknesses, opportunities and threats known as

SWOT are all the factors that have to be known and
maintained to run an organization. SWOT analysis is important
for an organization for having high profit as well. Suppose in a
coffee shop, the best coffee served is the strength. The area
where the coffee shop runs can be the opportunity. Not
adapting with new products or the new generations taste
might be the weakness. Any new shop beside the shop can be
the threat. If any business want to make profit they will need to
analyze and maintain all these things to survive in the market.
 About Second Cup Coffee Company

Second Cup Coffee Company started in 1975 in

Toronto, Canada. In the next forty years it expanded
to more than 30 regions around the world. The
Franchise’s partners and operators are committed to
serve the best coffees in the world in an inviting
atmosphere with uncompromising standards of
customer service, product quality and freshness.
Second Cup continuously supports quality causes
that will directly impact the lives of coffee farmers
around the world. They support Trees For The
Future and Coffee Kids. All their coffees are
Rainforest Alliance Certified beans.
Strengths of Second Cup

■ Internationally recognized brand: Provides services according to global

standards, with internationally accepted recipes and foreign raw materials.
■ Signature Products: Products that are unique and found only in their cafe,
such as the Caramel Corretto, Apple Cider Hot Chocolate, Frrrozen Hot
Chocolate etc. A competitive edge over its many competitors around the
Banani and Gulshan area.
■ Fresh Products: The products served are as ordered by the consumers and
specifically made for each consumer.
■ Part of a bigger Franchise: As part of Food Chain Asia Limited, Second Cup
is able to handle the incurring initial losses of opening a business and
survive through it. They can also serve dishes which are available on
Manhattan Fish Market, as it is just opposite of Second Cup.
■ Starting new branches: Food Chain Asia intend to start a new branch of
Second Cup coffee in dhanmondi within the year, along with two carts that
can be placed near or on events. More branches will most probably increase
consumers recognizing the shop and increase popularity.
Weaknesses of Second Cup
■ Other products: The bakery items they serve are from other renowned
bakeries, however they are not on the same level as the coffee or the hot
chocolates, which are unique and are according to consumer
preferences.

■ The sandwiches: The only self prepared food they serve is the
sandwiches which are not up to the same quality as the beverages. The
smoked sandwich which I tried had lackings and is not even close to
what other coffee shops are providing.

■ Price: The price is a bit high for most people in Bangladesh. Though the
quality is accordingly just that good, the targeted market of university
students are not attracted. Only ten to fifteen percent of their consumers
are students, while their target was to have around 50%.
Opportunities for Second Cup
■ Location: The shop is situated in the middle of Kamal Ataturk Avenue, one of the
busiest places in Dhaka with Offices and Universities surrounding the building of
the shop. The building has two AIUB campuses on each entering side of it.

■ Rush hour: While business is as usual during the whole day, it's the rush hour
that takes a test of them. During 11am to 1pm and 7pm to 9pm consumers come
in the most. These consumers are usually office workers or friends looking for
place to relax, if they can provide the expected service chances of making them
loyal customers are high.

■ Future plans for a bakery: While the shop is currently selling bakery products,
bought from different bakeries. The items are not according to their standards,
their own bakery will provide the opportunity to serve customers with their own
products and make a better name for themselves.
Threats for Second Cup
■ Consumers are different: The products successful in Canada and other
countries might not be accepted in the Bangladeshi environment.

■ Not being accepted after some time: Even though they have just started
business in Bangladesh, the customer base is growing slowly. However if
the growth rate is slow and does not increase even after some time, the
coffee shop might ultimately end up failing.

■ No other branches: Currently they do not have any other branches, in a city
where it's difficult to reach from one point to another within an hour, people
from the south side usually do not prefer to make an one hour travel for just
a cup of coffee, if the dhanmondi branch was there it would have attracted
more consumers from the south side of the city.
 Question Marks: Stars:
Low Sales; High Popularity High Sales; High Popularity
Growth Growth P
o
p
Sandwiches Caramel Corretto, Cookies and
u
Cream Chiller
l
Dogs: Cash Cows:
Low Sales; Low Popularity High Sales; Low Popularity a
Growth Growth r
i
Bakery Items such as mouses Creamy Hot Chocolate, Hot
t
and cakes Spiced Apple Cider y

S a l e s R a t e
 Five Competitive Forces

■ Threat of new entrants: It is rather easy to start a coffee shop in

Bangladesh, with a small capital being sufficient to start a coffee shop.
However opening one which is as good or big as Second Cup is
relatively difficult.
■ Threat of substitutes: People having a change in trend and starting to
drink mojitos more. Though Second Cup might adapt to slight changes in
taste/trend due to already serving different types of beverages.
■ Current Rivalry: The coffee shops who are on the same level as Second
Cup, for eg. Gloria Jean's Coffees, Coffee World etc. spread throughout
the Gulshan and Banani area.
 Five Competitive Forces (cont’d)

■ Bargaining power of the Buyers: Due to substitute shops being

available and having the threat of change in taste/trend, buyers
are a strong force with their bargaining power. Thus the products
need to adapt to change and keep up quality to keep consumers
interested.
■ Bargaining power of Suppliers: Second Cup have a few fixed
suppliers who ensures the quality of the raw materials they
receive, however if the suppliers do not provide according to the
Second Cup standards they can easily change to another
supplier. Though finding one might take some time even with a lot
of ready suppliers in the market.
 Understandings

It is the unique taste that differentiates coffee shops from one

another while the preparing procedure remains almost the
same. Second Cup particularly focuses on quality a lot more
than most coffee shops, they intend to provide their
consumers with the best coffee possible. Their emphasis on
fresh products has led to them to come to the decision of
opening a new bakery for their consumers. However their lack
of popularity in Bangladesh has led to low sales.
 Suggestions

They need to open the planned dhanmondi branch as soon

as possible. They also need to improve their sandwiches
along with bringing some new items, such as burgers and
hotdogs into their menu. Furthermore they need to reduce
the prices of their popular products a bit so that they can be
purchased by everyone.
The End